1) Cost Retail

Initial Inventory $ 98,000 $140,000

Shopping 448,000 640,000

Freight in Purchasing 12,000 -----

Sales 672,000

Determine the final inventory at retail prices: a. $780,000. b. $672,000. c. $114,000. d. $108,000.

2. A company Major General presents the following accounts related to inventory transactions:

Initial Inventory $30,000

Shopping (Purchases) 200,000

Freight in Purchase (Freight-in) 10,000

Delivery expense (Delivery expense) 5,000

Purchases Returns 7,000

Interest paid on purchases 2,000

Taking a physical inventory reflected a final inventory of $23,000. The cost of the company sold items will be: a. $215,000. b. $210,000. c. $206,000. d. $204,000.